China’s banking, insurance watchdogs likely to merge in massive financial regulatory overhaul
Regulators likely to be consolidated as part of President Xi Jinping’s plans to reduce financial risk
China is considering plans to merge its banking and insurance watchdogs to bring more order to a fragmented regulatory system and to heed President Xi Jinping’s calls to reduce financial risk.
Sources with knowledge of the matter told the South China Morning Post that proposals were being considered to amalgamate the China Insurance Regulatory Commission (CIRC), which has been headless since its chairman was put under investigation for corruption in April, and the China Banking Regulatory Commission (CBRC), which is chaired by veteran financial official Guo Shuqing.
While no formal announcements have been made on the subject, a statement issued on Wednesday evening at the end of the 3rd plenary session of the 19th Central Committee of the Communist Party suggested significant changes to both the party and government apparatus were in the pipeline.
“The institutional and functional settings of the party and the state … are not fully up to the demands of a modern state governance system,” the statement, carried by state media, said.
A revamp of the financial regulatory system is very likely to be part of the changes discussed at the three-day meeting of the party’s top cadres.
